I haven’t been posting them but still lots of hints that deficits are now high enough in the euro zone to stabilize GDP for Q3.

German Industrial Production Unexpectedly Increased in July
French Industrial Production Climbs on Refineries, Car Factories
French Industrial Confidence Climbs for First Time Since March

4 Responses

  1. Looks like the decision has been taken to send a strong signal that the euro will not go down. Still a bit of fuzziness what that means, but it seems to be being taken as credible.

    Now the problem is political, the “conditionality.” Will all countries accept the rule of the Troika and what austerity implies for peripheral domestic economies, and even core economies like France, for the foreseeable future with no end it sight?

  2. I think I mentally object to the use of the word “deficit” because it refers to less than a necessary quantity of something without, in this instance in particular, taking into account that in any dynamic system, there is never a state of equilibrium. Indeed, even trying to attain such a state may well be counterproductive because of the energy being used in pursuit of something not worth having in the first place.
    Obligations are expectations which spur to action. The problem is that instinct-driven conservatives react to situations; they don’t look ahead, so they don’t expect.
    But, yes, obligations, being expressions of what people expect to be accomplished, are inevitably uncertain because the future is uncertain.
    How so many short-sighted people managed to enmesh themselves in finance is a puzzlement. Perhaps it’s like someone who likes to eat fancying himself a great chef.

  3. Not really sure if we are waiting for stabilization of the economy or waiting for a new political regime to take over. The Catalonian Independence march today was peaceful yet alarming how quickly that large a group was mobilized. ( A million +?)

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